The COVID-19 pandemic smacks every industry in a different manner. Those businesses that depend on human interaction such as offices, transportation, retail businesses, and in-person customer service are heavily impacted by pandemic. Other businesses are on the mercy of lockdown and Quarantine. One industry that is badly affected by COVID-19 is Startups across the world, facing one-shot challenges. They are facing economic strain as they generated almost zero revenue to monthly business. In order to save money, many of these startups are sorting out this problem to layoffs. It is very obvious that due to citywide lockdowns, inter-city or intra-cities transportation is almost blocked. Some solid business industries insulated the trends of layoff and radically modified their future plans.
According to the current condition, startups are stuck for past few months. Let use view a list of industries in order from highest layoffs being first and then proceed in decreasing order:
3. Retail business
7. Real Estate
Fortunately we managed to get a survey report layoffs.fyi, which gives sourcing information of startup layoff data. This data reveal that many companies are cutting a great portion of their employees. If we classify some of the startup layoffs as:
|Paisa Bazaar||50 %|
|Magic leap||50 %|
|Flywheel Sports||98 %|
|Uber India||23 %|
Uber laid off approximately 6,700 employees (25% of staff) this month. Not only layoff, Uber is also closing down 45 of their offices, product incubators, AI labs and self-driving units. During this pandemic the core business of Uber has fallen about 80% and growth of business has not been enough to recover the loss.
As we all know Airbnb is a logistics company that provides stuff in company-to-company or company-to-suppliers is now laying off 1900 employees that make 25% of their total staff by this month.
Samsara is a Startup company that makes and supplies internet-connected sensors that help industrial units to optimize their operations. Samara also laid off more than 290 employees that make 18% of the total staff- due to the economic downturn. Moreover, they also slash executive’s salaries 30% of their payroll for the rest of the year.
Stockwell is a smart vending machine startup; news about Stockwell AI revealed that It will be shutting down 10% by July 1. Many of their folks are now jobless.
Stubhub is an online ticket marketplace also laid off 200 employees permanently and 450 employees for rest of lockdown. Due to the risk of disease spread concerts and sport gatherings are stopped up. Online Ticketing markets like Stubhub have been worst- affected by this viral pandemic.
Whole database shows how unemployment expands during this lockdown that is an alarming condition facing people all over the world. Meanwhile, startup companies remold their business structure and shifted to digital mode of business. They are hiring technology specialists who help to run their digital fronts. Research shows that employees related to technology are only people with a sense of job security because technology is valuable in every economic situation.
Cover Photo Credit: recruiter.com
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